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US Prices Drop by Largest Amount in 56 Years

Discussion in 'Politics & World News' started by N8 v2.0, Dec 15, 2005.

  1. N8 v2.0

    N8 v2.0 Not the sharpest tool in the shed

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    Whoa!



    Prices Drop by Largest Amount in 56 Years
    MARTIN CRUTSINGER, AP Economics Writer

    WASHINGTON - A record plunge in the cost of gasoline pushed consumer prices down by the largest amount in 56 years in November while industrial production posted a solid gain.

    The new government reports Thursday provided further evidence that the economy is shaking off the blows delivered by a string of devastating hurricanes.

    The Labor Department reported that its closely watched Consumer Price Index dropped by 0.6 percent last month, the biggest decline since a 0.9 percent fall in July 1949. It reflected a record fall in gasoline prices, which have been retreating since they surged to above $3 per gallon right after Katrina hit.

    Meanwhile, the Federal Reserve said output at the nation's factories, mines and utilities rose a solid 0.7 percent last month following a 1.3 percent rise in October. Industrial output had plunged by 1.6 percent in September, reflecting widespread shutdowns of oil refineries, chemical plants and other factories along the Gulf Coast.
     

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  2. Tenchiro

    Tenchiro Attention K Mart Shoppers

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    A record fall in gas prices doesn't mean much following a ercord surge in said prices.

    Kind of like how Sears marks up prices and extra 30% and then acts like they are doing you a favor by offering 20% off.
     
  3. binary visions

    binary visions The voice of reason

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    Amazon.com just posted a coupon code yesterday giving you 5% off.

    If you look closely at the prices, though, they jacked up the eligible items by 5%. I had an item in my shopping cart from the previous day that was eligible and the price went up.

    Makes people feel good, though.
     
  4. LordOpie

    LordOpie MOTHER HEN

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    It's like when I get an erection after swimming in ice water. It only seems a lot more impressive.
     
  5. blt2ride

    blt2ride Turbo Monkey

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    The gas prices are still pretty high; however, they are about where they were before Hurricane Katrina--which is between $2.19-$2.30 here in So Cal. It's nothing to write home about, but it's A LOT better than the $3.15s we saw in August and September.
     
  6. binary visions

    binary visions The voice of reason

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    No, I don't think that's impressive by any stretch of the imagination. No matter what the situation.